ConsumerWatch: Toy classics go high tech

NEW YORK (CBS.MW) -- Despite the flashy gadgets that are infiltrating school playgrounds and highlighting this week's Toy Fair trade show, kids report they prefer the traditional board game to the wonders of high tech.

"lt just goes to show that a classic is a classic is a classic."

Steve Carnevale, Simmons Market Research

That's what Simmons Market Research Bureau discovered when it polled 5,000 children aged six to 11 nationally. Monopoly, Guess Who and Twister topped the list of favorites in the 88 percent majority who voted for board games. Electronic home video games came in second with 73 percent, followed by crayons, beanie babies, stuffed animals, puzzles, hand-held video games and dolls.

Enduring childhood memories contribute to the staying power of board games, said Gary Serby, spokesperson for Hasbro
HAS, -1.41%
maker of Monopoly. "People want that social interaction," said Serby. "They want to be able to see the facial expression of someone across the table while you're playing that board game."

"It just goes to show that a classic is a classic is a classic," added Steve Carnevale, general manager of Simmons Market Research.

Merging old and new

They may be classics, but low-tech toys aren't immune to the changing market. Traditional toy manufacturers are forging alliances with high-tech companies, said Carnevale, pointing to a joint venture between Microsoft
MSFT, +1.28%
and Mattel's
MAT, -0.86%
Fisher Price to make technology-based infant and preschool toys, the first of which is called IntelliTable.

Hasbro's My Real Baby

Hasbro
HAS, -1.41%
and IRobot are also introducing My Real Baby, a doll that displays human expressions, cries when wet, and learns to talk. It will sell for about $95 and Serby said its "natural response technology" makes it the most advanced doll on the market. "It incorporates artificial intelligence and animatronics to create an incredibly realistic experience for little girls."

The doll's emergence is a reflection of consumer demand, he said. "Today's children are very familiar and comfortable with technology. They expect better and more exciting play patterns. Technology allows us to give that added experience that kids and parents want today."

Even Hasbro classic Mr. Potatohead, which continues to sell "extremely well," is up for a millennial makeover, said Serby. "We've got a lot of things on the drawing board."

Savvy consumers

For Carnevale, kids represent a demographic that shouldn't be underestimated. "What we see is that kids who are six to 11 are very savvy consumers, whether they're buying directly or nudging Mom and Dad or Grandma and Granddad," he said. "It's a market segment that manufacturers and retailers need to pay attention to."

And pay attention they are. The Toy Manufacturers of America kicked off the trade show by announcing that toy sales soared to $16.9 billion at the end of 1999, representing an 8.8 percent increase over 1998 figures.

When it comes to toys, kids know how to get what they want. They turn to Mom first since she's the one who brings them home most often, followed by dads and grandparents, according to the survey.

Kids are increasingly wired as they near independence, too. An overwhelming majority of kids, 93 percent, reported they use computers at home, a sign that is "very encouraging" for the future of toy e-commerce, said Carnevale.

"It makes them accessible to any and all toy-buying opportunities. Even though they may not be the ones to push the button, they can certainly look at the information, print out copies and take it to Mom and Dad.

How they'll toy shop

Another feature retailers should understand is that online shoppers are not e-exclusive, said Carnevale. "We found that people who shop online also shop brick and mortar."

As the American population ages and baby boomers move into their golden years, Carnevale said he expects grandparents to take a more active toy-buying role. "The parents of today are the grandparents of tomorrow. The online component to the buying process will become much greater."

Overall, kids report they're satisfied with the toys they receive, with two fifths reporting they get what they want most of the time. If it's the right kind of toy, giving in isn't always bad, said Carnevale. "Coming off of the '80s and into the '90s we were supposedly being less materialistic, but when you look at the toy-buying data, it seems that when it comes to toys we still indulge our kids as much as possible."

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